The Securities and Exchange Commission (SEC) is warning the public against dealing with and engaging scammers offering to facilitate unauthorized online loan and banking transactions through online messaging platforms and social media, as well as fraudsters posing as bank or government employees.

In an advisory, the SEC’s financing and lending companies department (FLCD) said it has observed a growing number of complaints and reports involving alleged unauthorized lending activities facilitated through online messaging platforms.

The lending schemes involve loan offers from unverified individuals or entities, the unauthorized use of the names and identities of legitimate financing or lending companies, requests for advance fees, as well as threats, harassment, and coercive collection practices, among others.

FLCD also received reports of an alleged modus operandi wherein individuals invite prospective borrowers to join messaging groups or chat channels dedicated to borrowers on Telegram.

After joining, other members of the group, who may be accomplices or participants in the scheme, allegedly send messages or testimonials claiming that they received loan proceeds after paying processing, verification, or release fees to entice victims into remitting money.

The schemes usually involve loan offers from unverified individuals or entities; unauthorized use of the names, logos, or identities of legitimate financing or lending companies; requests for advance fees, deposits, processing charges, unlocking fees, verification fees, or similar charges before the release of loan proceeds; communications made solely through private messaging accounts or unofficial channels; suspicious links, downloadable files, or applications sent through messaging platforms; and threats, harassment, or coercive collection practices after personal information has been disclosed.

In a separate advisory, the SEC warned the public against the proliferation of fraudulent schemes facilitated by individuals posing as government employees or bank representatives.

These individuals employ an impersonation scheme, commonly referred to as bank phishing or “vishing,” wherein perpetrators exploit trust and urgency to gain unauthorized access to confidential information, targeting banking clients and the general public and resulting in financial losses and the compromise of personal data.

Individuals impersonating government employees or bank representatives typically contact their victims through social media platforms, including Telegram and Viber, as well as through phone calls, text messages, and emails.

“The public is advised not to disclose personal, banking, or financial information, not to click suspicious links or attachments, to verify directly with the bank or relevant government agency, to be wary of urgent or threatening messages, and to report suspicious activities immediately,” said the SEC.